Mar 31, 2017 (LBO) – US President Donald Trump is to sign executive orders Friday to identify trade abuses carried out by other countries and to conduct a major review of the causes of US trade deficits, senior officials said.
These trade abuses include dumping of goods below costs and unfair subsidies, “non-reciprocal” trade practices by other countries and currencies that are “misaligned.”
The move comes ahead of his first meeting with Chinese President Xi next week, media reports said. China was the biggest contributor to the 734 billion US dollars trade deficit of US last year.
The review will also examine World Trade Organization rules that do not treat countries equally, such as on taxation.
The study which will be completed in 90 days will be the first “systematic analysis” of the trade deficit’s causes, “country-by-country and product-by-product.”
The study would focus on countries that have chronic goods trade surpluses with the US.
China tops the list, with a 347 billion US dollars surplus last year, followed by Japan, with a 69 billion surplus, Germany at 65 billion, Mexico at 63 billion, Ireland at 36 billion and Vietnam at 32 billion.
Another order to be signed by Trump is aimed at halting the non-payment and under-collection of anti-dumping and anti-subsidy duties the US slaps on many foreign goods.
Officials said that 2.8 billion US dollars in such duties went uncollected between 2001 and the end of 2016 from companies in 40 countries.